Cyber Risk

As businesses rely more on digital systems and data, cyber risk has become one of the most significant risks they face. Threats come from criminals seeking money or data, state-sponsored hackers, insiders and accidental failures.

Common cyber events include ransomware attacks that lock systems until a ransom is paid, theft of customer data, fraud using fake emails to trick staff into making payments, attacks that overwhelm websites and failures of critical suppliers or technology providers.

For example, a ransomware attack on a manufacturer might halt production for weeks, causing lost revenue, recovery costs, regulatory penalties if personal data was exposed and damage to customer trust.

Organisations manage cyber risk through security technology, staff training, access controls, regular backups, incident response plans and testing. Many buy cyber insurance to transfer part of the financial impact. Regulators increasingly require financial institutions and other critical industries to show they can withstand and recover from cyber incidents.